SAN DIEGO - August 26, 1998 - Qualcomm Incorporated (NASDAQ: QCOM) announced a signed contract with Shyam Telelink Limited to supply a turnkey cdmaOne™ (IS-95 Code Division Multiple Access) Wireless Local Loop (WLL) network to the Rajasthan region of India. Shyam Telelink Limited is licensed to deploy an 800 MHz CDMA WLL system to provide much-needed telephone services to the region, where many customers are currently waiting for telephone service. Under the terms of the agreement, Qualcomm will supply up to $45 million of CDMA infrastructure equipment, wireless telephones and deployment services."It is a landmark opportunity for Qualcomm to participate in Shyam Telelink's project to increase teledensity and improve telecommunications for Rajasthan's 51 million people," said Marshall Towe, Jr., vice president for Qualcomm's Wireless Infrastructure Division. "We share Telelink's vision of accessible, high-quality, reliable and secure communications for each city, town and village in the region, and we look forward to working with Telelink's engineering teams to ensure a rapid and efficient networkdeployment." Deployment of the network is expected to begin in the fourth quarter of 1998 in the city of Jaipur, with expansion into surrounding towns and villages expected shortly thereafter. The network is expected to serve over 23 urban areas within the first year of operation and to offer a combination of fixed and limited mobility services to subscribers."We selected Qualcomm to deploy our CDMA network not only because they have already successfully demonstrated their CDMA WLL capabilities in India, but also because of their advanced CDMA products, technical expertise and deployment experience around the world," said Rajiv Mehrotra, chairman of Shyam Telelink Limited. "With CDMA, we will be able to provide wireline-quality telephone service to even the most remote areas of Rajasthan." "In a region where significant subscriber growth is expected as soon as wireless telephone services become available, a CDMA network from the leading wireless local loop vendor -- Qualcomm -- is the best choice for Telelink to meet capacity and quality requirements," said B.A. Majmudar, president of Qualcomm's Wireless Infrastructure Operations in India. "We commend Telelink for its leadership in selecting Qualcomm CDMA, and with this agreement, we renew our commitment to India and to providing the highest quality communications to our customers."Qualcomm will provide Shyam Telelink Limited with its 800 MHz QCell™ base stations, QCore™ switching and base station controller equipment, and wireless local loop telephones. The system will be designed using Qualcomm's industry-leading network planning software tool, QEDesign®. Qualcomm will also provide a range of deployment services, including installation, commissioning and optimization.Qualcomm supplied and installed the first CDMAWLL network in India, a commercial system that has been serving New Delhi customers since May 1997. Qualcomm has emerged as a leader in the WLL arena with deployments underway throughout Asia, Africa, the Commonwealth of Independent States and the Americas. As the pioneer of CDMA technology, Qualcomm is able to design and manufacture products that optimize cdmaOne technology to its greatest potential, providing high-performance networks to operators all over the world. Shyam Telelink Limited was incorporated in 1995 for the purpose of establishing and operating basic telephone services in India and was promoted by Shyam Telecom Limited.Headquartered in San Diego, California, Qualcomm develops, manufactures, markets, licenses, and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products, and in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other company products include the Eudora Pro® electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development and change in economic conditions of the various markets the Company serves. The described transaction is subject to a number of customary representations and warranties, as well as a number of conditions precedent to the party's obligations. These and other risks are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1997 and most recent Form 10-Q.